January 12, 2002

New York State Gov George Pataki is calling for wide array of new health care spending, plus some modest program cuts; he wants Legislature to approve entire health care budget for next fiscal year beginning April 1, more than $30 billion, before he proposes budget as a whole (M)

Some Republicans in Congress are not yet willing to defend Bush administration in escalating Enron inquiry while so many facts are still unknown, but they warn Democrats against trying to use case for partisan advantage; Rep Thomas M Davis III, chairman of National Republican Congressional Committee, is among those who are approaching matter warily because so many questions remain unanswered; publicity over Enron has unnerved Republican politicians, while Democrats savor what some describe as biggest opening they have had to portray Pres Bush and his party as pawns of special interests; photos (M)

Ford Motor Co announces most sweeping cutbacks in two decades, terminating 35,000 workers, closing five plants and dropping four models, including Lincoln Continental and Ford Escort; cuts North American capacity by nearly million cars and trucks a year; William Clay Ford Jr, who took over as chief executive 10 weeks ago, says company underestimated its competitors and effects of recession, and reached too far beyond business of making cars and trucks; analysts are divided over whether cutbacks would be enough to restore Ford's competitiveness; note that cuts in North America, of 21,500 workers, are smaller than reduction of 26,000 workers announced by Chrysler last year, and smaller than huge cutbacks by General Motors in early 1990's; other Ford cars to be retired are Mercury Cougar and Mercury Villager; plants to be closed are in Edison, NJ, Brook Park, Ohio, Oakville, Ontario, Hazelwood, Mo, and Dearborn, Mich; photo; graph; chart detailing cutbacks (L)

Enron Official Sought Help From Government Last Fall The president of the Enron Corporation repeatedly called a senior Treasury Department official last fall and sought help arranging bank loans for the energy company as it scrambled to avoid collapse, the Bush administration said. The official, Peter R. Fisher, the under secretary of the Treasury for domestic finance, spoke six or eight times during late October and early November with Greg Whalley, Enron's president, a Treasury Department spokeswoman said. [Page A1.]

Documents related to corporate audit, such Arthur Andersen's audit of Enron Corp, are generally maintained for years by accounting firms, although there are no hard and fast rules governing how soon they can be destroyed; only some audit papers are maintained, however, and accounting firms have long held that less important papers can be destroyed as soon as an audit is completed; lawyers and accountants agree that all relevant documents must be preserved once auditor learns of government investigation related to audit, even if it would have been permissible to dispose of them before that; photos (M)